Bad Credit Home Loans
Find a simple way forward when your credit history is not perfect.
Struggling with bad credit? You can still get a home loan.
Welcome to Chatswood Home Loans. If your credit history isn’t perfect, with missed payments, defaults, arrears or bankruptcy, we can still help you secure a home loan. We’ll help you understand your borrowing capacity, explore bad credit home loan options, access specialist lenders, and structure your finance so you can move forward with confidence.
Understand Your Borrowing Power and Budget
Many Australians with bad credit aren’t sure how much they can borrow or what costs to expect such as deposit, lender’s mortgage insurance,etc. We’ll look at:
- Your income, expenses, liabilities and savings
- Your current credit file and history
- Available equity in existing property if refinancing
This helps us work out a realistic borrowing capacity and identify lenders who will work with you despite past credit issues.
Access Specialist Lenders and Bad Credit Solutions
We work with over a wide range of lenders, including specialist lenders who:
- Accept default, arrear, late payment and past bankruptcy
- Consider irregular income, self-employed borrowers and discharged bankrupts
- Provide loans for first home buyers, refinancing and investment properties
These lenders look at your whole history and scenario, not just your credit score, giving you a real chance at securing home loans.
What to Expect in the Process
- Initial chat and fact-find – we listen to your goals, financial position, and credit history
- Loan options and recommendation – we present tailored bad credit home loan solutions and explain the pros and cons of each
- Prepare documentation – guidance on payslips, bank statements, ID, credit reports and supporting documents
- Lodging application and follow up – we liaise with lenders, address queries, and expedite approvals
- Pre-approval (conditional) – gives confidence in your borrowing capacity before committing.
- Formal approval and settlement support – we support you all the way to settlement
- Post-settlement review and ongoing advice – we remain available for refinancing,or any future home loans
We assist a wide range of clients who might think banks will say no, including home buyers with past defaults or missed payments, homeowners in arrears, clients juggling multiple debts, self-employed borrowers with irregular income, and discharged bankrupts ready for a fresh start.
Frequently Asked Questions On Bad Credit Home Loans
How do bad credit home loans differ from standard mortgages?
Bad credit home loans are designed for borrowers with credit issues such as defaults, missed repayments or past bankruptcy. They generally come with higher interest rates and extra risk fees, and borrowing limits may be tighter. Some lenders may also restrict certain property types or postcodes.Standard mortgages usually offer lower rates, more features and higher loan to value ratios, but require stronger credit scores and a stable financial history.For many borrowers, a bad credit home loan is a starting point until their credit improves enough to refinance to a standard loan.
Can I still get a home loan if I have defaults or arrears?
Yes. Specialist lenders consider your full financial situation, not just your credit score. Recent defaults or arrears do not automatically disqualify you if you can show stable income and responsible financial behaviour since the issues occurred.
What happens if I am self-employed or have irregular income?
Many lenders offer low-doc or alternative documentation loans that accept irregular income, ABN holders, contractors, or small business owners. Providing bank statements, tax returns, or cash flow summaries can help demonstrate your ability to meet repayments.
Can I consolidate my debts with a bad credit loan?
Yes. Some bad credit home loans allow you to roll multiple debts into one loan, making repayments easier to manage. This can help reduce stress, avoid further defaults, and improve your overall financial situation over time.
How do lenders assess my credit history?
Lenders review the severity, frequency, and recency of credit issues. They also consider your current income, assets, and the purpose of the loan. Demonstrating a stable financial situation now increases your chances of approval.
How long does it take to get a loan approved with bad credit history?
Approval times vary depending on your documentation, lender, and loan type. Generally, pre-approval can be obtained within a few days to a week, while full approval may take a few weeks. Providing accurate documents upfront can significantly speed up the process.
What is the lowest credit score for a home loan?
There is no fixed minimum score because specialist lenders assess each application individually. Many lenders can still consider applications with scores below 500 if the financial situation is stable and any past issues have been resolved.
Will my interest rate be higher?
Most bad credit home loans come with higher interest rates because the lender is taking on additional risk. However, rates often improve over time as your credit history recovers, and refinancing later may become an option.
Can I apply for home loans with bad credit and still get features like redraw or offset?
Some specialist lenders do offer redraw facilities and offset accounts, although availability varies. These features may come with stricter criteria or slightly higher costs, but they are still accessible for many borrowers depending on the lender and loan type.